Question

Quick question with performing a regression in excel. So, I have already performed the necessary analysis, but my instructor is asking me for the mean values of the variables? Are these the coefficient estimates of the variables? (I.e. if I have a variable BB and its coefficient is -0.056 according to excel)? If not, what is he talking about? Please help! Thank you

Answer 1

Suppose you have the regression model

Y = b_{​​​​​​0} + b_{​​​​​​1}*X1 + b_{​​​​​​2}*X2 + ... +b_nXn

then b_{​​​​​​0} , b_{​​​​​​1} , ... , b_{​​​​​​n} are called parameters

Y is called response variable or independent variable

X_{​​​​​​i,} (i = 1,...,n ) is called explanatory or dependent variable

By fitting the regression model you get the estimates of parameters

So these estimates will be the coefficient of response variables

Generally we calculate expected mean response i.e E(Y|X)

Also for hypothesis testing part you need to evaluate E(SSR) AND E(SSE) where SSR : Sum of squares due to Regressor and SSE: Sum of squares due to errors or Residual sum of squares